Simple, Scalable E-invoicing Solutions.
Corporate Presentation Q2 2017
TSXV: CBX
This presentation is not, and nothing in it should be construed as,
an offer, invitation or recommendation in respect of Cortex Busi-
ness Solution’s securities, or an offer, invitation or recommenda-
tion to sell, or a solicitation of an offer to buy, the facilities or any of
the Company’s securities in any jurisdiction. Neither this presenta-
tion nor anything in it shall form the basis of any contract or
commitment. This presentation is not intended to be relied upon
as advice to investors or potential investors and does not take into
account the investment objectives, financial situation or needs of
any investor. All investors should consider such factors in consulta-
tion with a professional advisor of their choosing when deciding if
an investment is appropriate. The Company has prepared this
presentation based on information available to it, including
information derived from public sources that have not been
independently verified. No representation or warranty, express or
implied, is provided in relation to the fairness, accuracy, correct-
ness, completeness or reliability of the information, opinions or
conclusions expressed herein. These projections should not be
considered a representation of the Company’s potential cash
generation performance in any way.
DISCLAIMERThe financial information included in this presentation is
preliminary, forward-looking, unaudited and subject to
revision. All forward–looking statements attributable to the
Company or persons acting on its behalf apply only as of the
date of this document, and are expressly qualified in their
entirety by the cautionary statements included elsewhere in
this document. The financial projections are preliminary and
subject to change; the Company undertakes no obligation to
update or revise these forward–looking statements to reflect
events or circumstances that arise after the date made or to
reflect the occurrence of unanticipated events. Inevitably,
some assumptions will not materialize, and unanticipated
events and circumstances may affect the ultimate financial
results. Projections are inherently subject to substantial and
numerous uncertainties and to a wide variety of significant
business, economic and competitive risks, and the assump-
tions underlying the projections may be inaccurate in any
material respect. Therefore, the actual results achieved may
vary significantly from the forecasts, and the variations may
be material.
2
CURRENT LANDSCAPE
7419.10
3.12
26.329
21.4
of companies still receive & manually process paper invoices *
is the cost to process a single invoice using a manual process *
of companies duplicate or overpay invoices on a regular basis *
of companies do not pay on time & lose out on possible discounts *
of invoices contain incorrect information, costing up to 8x more to process **
of invoices are sent to the wrong receiver (internally) **
* Epayables 2013: AP’s New Dawn. Ardent Partners Ltd.; ** E-invoicing Entering a New Era 2015, Billentis
%
$
3
%
%
%
%
Of the 500 billion bills/invoices globally, 42 billion are estimated to be exchanged paperless in 2015 (North America 7B).
This means approximately 91%of the market has yet to adopte-invoicing.
OPPORTUNITY
91%
4
E-invoicing / E-Billing 2015, Billentis
Source: Billentis, 2015
LEADERS
AVERAGE
DEVELOPING
LAGGARDS
OPPORTUNITY
5
KEY DRIVERS OF ADOPTION
PI Financial (Ardent Partners)
With such an abundant amount of invoices to be processed, companies are always looking for ways to improve A/P and A/R functions.
Electronic and automated invoice processes can result in savings of 60 – 80% compared to traditional paper-based processing.
6
KEY DRIVERS OF ADOPTION
Reduction in processing costs
Fewer lost or missing invoices
Quicker approval cycles
Better visibility across the transaction lifecycle
Increased ability to capture discounts
Increased on time payments
Reduction in exceptions/ discrepancies
Fewer duplicate invoices
Improved vendor satisfaction
Fewer supplier inquiries
54%
31%30%
25%
24%
23%
17%
10%
9%
5%Invoice Receipt Management Report, 2015, PayStream Advisors
7
INDUSTRY BARRIERS TO ADOPTIONIntegration with in-house
& Supplier systems
Gaining Supplier adoption
Internal change management /lack of executive sponsorship
Solution does notfunction as expected
47%
42%
37%
1 1%
Invoice Receipt Management Report, 2015, PayStream Advisors
8
9
Flexible ConnectionMethods
Trading Partner Network
Workflow & ERP Agnostic
THE CORTEXADVANTAGE
TECHNOLOGY
10
Value AddedServices
Ongoing Training &Support
SupplierOnboarding
THE CORTEXADVANTAGE
PEOPLE
11
Scalable for any sized business
IndustryAgnostic
Primarye-InvoicingFocus
MARKETSTRATEGY
USA
CORTEX MARKET PRESENCE
CANADA57%11,000+ Registered
Organizations
10M+
Annual TransactionValue Processed10B+
96%
43%
12
TransactionsProcessed Annually
Customer SatisfactionRating
13
Capitalize on New Industry Growth
Increase VolumeWithin Current Base
Add New Oil & Gas Customers
GROWTHSTRATEGY
14
$
$
Buyer & Supplier Shared Costs
Recurring Monthly Access Plans
RECURRINGREVENUEMODEL
FINANCIAL MODELRevenue Access & Usage Fees Integration & Set-up Fees Project Management Consolidated Revenue
Consolidated Cost of Sales Gross Profit Gross Profit Margin
ExpensesSales & Marketing Research & Development General & Admin Severance & Termination Benefits Total Consolidated Expenses
Loss Before Finance Finance Income (Expense)
Tax
Net income (loss)
15
2016$9,376,298
$404,062$43,158
$9,823,518
$5,462,248$4,361,270
44%
$1,429,838$1,990,361$3,412,059
$213,445$7,045,703
($2,684,433)($7,249)
($2,691,682)
$12,987
($2,704,669)
2016 Q2$2,443,975
$110,729$3,869
$2,558,573
$1,397,136$1,161,437
45%
$324,954$489,545$858,327$105,626
$1,778,452
($617,015)($1,959)
($618,974)
$282
($619,256)
2017 Q2$2,398,153
$82,475$241,048
$2,721,676
$772,442$1,949,234
72%
$584,152$462,159
$1,014,480$70,233
$2,131,024
($181,790)$429
($181,361)
$15,024
($196,385)
FAST FACTS (Q2 FISCAL 2017)
16
STOCK PRICE (Jan 31, 2017)$3.20
52 WEEK LOW/HIGH$2.10/$3.28
AVG. DAILY VOL. (3 mo.)12,190
SHARES OUTSTANDING8.99M
OUTSTANDING WARRANTS0
MARKET CAPITALIZATION$28.8M
ENTERPRISE VALUE$23.3M
TOTAL REVENUE $2.72M
EPS$(0.02)
INSIDER OWNERSHIP %18%
CASH and Short Term Investments*$5.42M
TOTAL ASSETS*$6.97M
TOTAL DEBT*$0
TOTAL LIABILITIES*$1.35M
FINANCING$0
*As at Jan 31, 2017
Q2 FINANCIALS
17
SUPPLIERS VS. ACCESS & USAGE FEES TRANSACTIONS VS. ACCESS & USAGE FEES
7600
7800
8000
8200
8400
8600
8800
9000
9200
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Q2 F2015 Q3 F2015 Q4 F2015 Q1 F2016 Q2 F2016 Q3 F2016 Q4 F2016 Q1 F2017 Q2 F2017
Usage Fees Access Fees Active Suppliers
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Q2 F2015 Q3 F2015 Q4 F2015 Q1 F2016 Q2 F2016 Q3 F2016 Q4 F2016 Q1 F2017 Q2 F2017
Usage Fees Access Fees Billable Transactions
Q2 FINANCIALS
18
REVENUE CASH FLOW FROM OPERATIONS
$2,559
$2,403
$2,234
$2,469
$2,722
$1,500
$2,000
$2,500
$3,000
Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Rev
enue
(C$
000s
)
($400.3)
($205.5)
($432.4)
($126.2) ($108.8)
($500.0)
($400.0)
($300.0)
($200.0)
($100.0)
$0.0
$100.0
Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Cas
h Fl
ow fr
om O
pera
tions
(C$
000s
)
Q2 FINANCIALS
19
ACTIVE BUYERS / SUPPLIERS BILLABLE TRANSACTIONS VS.TOTAL DOCUMENTS
78 84 86 86 90 91 92 92 91
8.8 8.9 9.0 9.0 9.08.6
8.3 8.2 8.0
0.0
1.5
3.0
4.5
6.0
7.5
9.0
0
20
40
60
80
100
Q2 F2015 Q3 F2015 Q4 F2015 Q1 F2016 Q2 F2016 Q3 F2016 Q4 F2016 Q1 F2017 Q2 F2017
Act
ive
Su
pp
lie
rs (
00
0s)
Act
ive
Bu
yers
Active Buyers Active Suppliers Linear (Active Buyers)
1.41.2 1.2 1.2 1.1
1.0 0.91.0 1.2
3.9
3.43.1 3.1
2.9
2.52.3
2.72.9
0.0
1.0
2.0
3.0
4.0
0.0
0.5
1.0
1.5
2.0
Q2 F2015 Q3 F2015 Q4 F2015 Q1 F2016 Q2 F2016 Q3 F2016 Q4 F2016 Q1 F2017 Q2 F2017
Tota
l D
ocu
me
nts
Exc
ha
ng
ed
(M
Ms)
Bil
lab
le T
ran
sact
ion
s (M
Ms)
Billable Transactions Total Documents Exchanged
CAP TABLE
*based on $3.20 as at Jan 31, 2017
Total Cortex Shares Issued & Outstanding
Options, Warrants & Other Issuance Obligations
Fully Diluted
Cortex Market Cap 28,762,224
SHARES MARKET CAP
8,988,195
547,013
9,535,208
20
MANAGEMENT TEAMJoel Leetzow | CEOJoel’s tenacity and drive fuel his relentless passion for empowering a brilliant idea, taking it to market, and seeing industries and businesses change as a result. He came onboard in 2015 to lead the company’s contin-ued growth as an international e-invoicing player, bringing with him more than 25 years of leadership experience within technology companies in both Canada and the United States.
Sandra Fawcett, CPA, CGA | CFOSandra has dedicated herself to providing the expertise and leadership needed to ensure foundational stability and forward momentum to financial teams. She holds a CPA, CGA designation, and has worked previously in public accounting firms as well as providing financial statement and tax consulting services.
Elena Dumitrascu | VP, Strategic PartnershipsElena has spent her career working with Fortune 500 companies in the Energy, Automotive and Manufac-turing sectors. Her experience in sales, enterprise business development, and consulting in supply chain, operations, and regulatory compliance led her to found Oil and Gas software company Caledonia Solutions.
John Gilkison | VP, Sales & Business DevelopmentJohn is passionate in market opportunity identification and managing our global sales efforts, with long term growth, profitability and customer centric outcomes as priorities. From previous roles at SAP, DrillingIn-fo, Oildex, and Ceridian. John is recognized as a leader and motivator with immense energy that consistently builds high performance teams.
21
2016$9,376,298
$404,062$43,158
$9,823,518
$5,462,248$4,361,270
44%
$1,429,838$1,990,361$3,412,059
$213,445$7,045,703
($2,684,433)($7,249)
($2,691,682)
$12,987
($2,704,669)
2016 Q2$2,443,975
$110,729$3,869
$2,558,573
$1,397,136$1,161,437
45%
$324,954$489,545$858,327$105,626
$1,778,452
($617,015)($1,959)
($618,974)
$282
($619,256)
2017 Q2$2,398,153
$82,475$241,048
$2,721,676
$772,442$1,949,234
72%
$584,152$462,159
$1,014,480$70,233
$2,131,024
($181,790)$429
($181,361)
$15,024
($196,385)
Darryl Gate | VP, Client ServicesDarryl manages the entire Cortex lifecycle from new client sign up, to solution implementation, project management, customer training, account and relationship provisioning, to ongoing care and support. He and his team are focused on streamlining processes and performance for operational efficiency.
Andrew Stewart | Director, Marketing & Investor RelationsAndrew is responsible for all activity related to Cortex’s position and reputation in the marketplace. He manages the Marketing and Product Management teams, ensuring a strong go-to-market strategy that strengthens the corporate brand and relationship with the investor community.
Chris Lambert | VP, TechnologyChris leads and guides the evolution of our world-class product suite. Chris has extensive experience in software and application development, people and project management, and a passion for finding intelligent and efficient solutions to complex challenges.
22
MANAGEMENT TEAM
BOARD OFDIRECTORS
Randy Henderson CA CF ICD.D | Chairman
Scott Lamacraft | Director
Mark Ripplinger | Director
Grant Billing | Director
Joel Leetzow | CEO, President & Director
Greg Mark | Director
23
ANALYSTCOVERAGE
Hubert Mak, CPA, CA, CFA | Cormark SecuritiesP: 416.943.6727
David Kwan, CFA | PI Financial Corp.P: 604.718.7528
Pardeep S. Sangha | Haywood Securities Inc.P: 604.697.6142
24
CONTACTJoel Leetzow | CEOP: 403.219.1503 C: 587.582.3971
Andrew Stewart | Director, Marketing & Investor RelationsP: 403.219.1532 C: 403.519.3982
Sandra Fawcett, CPA, CGA | CFOP: 403.219.1500 C: 403.850.1850
25
CBX